GST Cuts Pave Way for Two-Wheeler Boom in Rural India
Lowering the GST on two-wheelers provides essential relief for first-time buyers, particularly in rural areas. As a pillar of mobility and the economy, the two-wheeler sector plays a crucial role in revenue and employment. The GST Council's upcoming meeting could lead to significant tax reforms.
- Country:
- India
Lowering the GST rate on two-wheelers could be a game-changer for first-time buyers, especially in rural and semi-urban areas, according to Hero MotoCorp's Pawan Munjal. He highlighted that two-wheelers serve as the backbone of personal mobility in these regions.
As the GST Council prepares to meet this week, Munjal emphasized that the two-wheeler industry is a major driver of both mobility and the national economy, contributing significantly to government revenues and job creation across its value chain.
The current tax structure places two-wheelers with up to 350 cc engines in the 28% GST slab, while those over 350 cc face an additional 3% cess. The meeting, chaired by the Union Finance Minister, will discuss proposals that could see most goods taxed at 5% or 18%.
(With inputs from agencies.)
Google News